Rules of Origin for parachute fabric (synthetic filament) — Dubai (UAE) to India
HS 54071011 · WOVEN FABRICS OF SYNTHETIC FILAMENT YARN · Rules of Origin & preferential rate
Data last updated: · MFN duty & IGST verified against ICEGATE (Indian Customs EDI). Rules of Origin per CEPA Annex 3B. Verify your exact HS line before filing.
- CEPA eligible
- Yes
- Value addition (RVC)
- 40%
- Tariff-classification change
- CTSH Annex 3B rule set at chapter level — it covers the whole chapter, not this code alone
- MFN → CEPA basic duty
- 20% → 0%
Rule of Origin (CEPA Annex 3B, primary source): CTSH + VA 40% (CEPA Annex 3B Product-Specific Rule; tariff-shift AND value addition both required).
Qualifying under the Rules of Origin
To claim the CEPA preference on parachute fabric (synthetic filament) (HS 54071011), the goods must qualify as UAE-originating. The Product-Specific Rule (Annex 3B) is "CTSH + VA 40% (CEPA Annex 3B Product-Specific Rule; tariff-shift AND value addition both required)": the goods must undergo a change of tariff sub-heading (CTSH) AND add at least 40% regional value content — both conditions, not either/or. Read that rule for what it is: Annex 3B supplies it at chapter level, so it governs hundreds of eight-digit codes rather than this one. It is the correct rule to apply, and it is also the place to check for a more specific carve-out before committing to a claim. Parachute fabric, woven from high-tenacity synthetic filament yarn, reaches zero basic duty under CEPA. For UAE technical-textile producers this is a clean saving, with origin met by a sub-heading change plus 40% value addition. Note that this code is one Annex 2A's regex-parsed table does not carry directly — its rate cell is a compound duty that had to be recovered from the schedule separately — so the position here rests on that recovered row rather than a straightforwardly parsed one. Heading 5407 spans many filament-fabric types at different eight-digit codes, so verify the exact line; the rate applies to the specific high-tenacity classification, not to all synthetic woven fabric. IGST is 5%. The azo-dye banned-amine restriction applies to dyed technical textiles as it does to apparel fabric, tested at clearance. A valid Certificate of Origin filed through the eCoO 2.0 system must accompany the shipment; without it, customs charges the 20% MFN rate instead of the preference.
Check your own figures in the Rules of Origin (RVC) qualifier. Qualifying is only half of it — the preference is claimed with a Certificate of Origin, issued in the UAE before shipment or retrospectively within 12 months.
Frequently asked questions
- Does parachute fabric (synthetic filament) qualify for India–UAE CEPA?
- Yes, if it meets the Annex 3B Product-Specific Rule "CTSH + VA 40% (CEPA Annex 3B Product-Specific Rule; tariff-shift AND value addition both required).": it must BOTH change tariff classification (CTSH) AND add at least 40% regional value content — both conditions are required, not either/or.
- What is the Rule of Origin for parachute fabric (synthetic filament)?
- Per CEPA Annex 3B: CTSH + VA 40% (CEPA Annex 3B Product-Specific Rule; tariff-shift AND value addition both required).. RVC% = [(FOB − value of non-originating materials) / FOB] × 100 (FOB basis).
- What proof is needed at import?
- A preferential Certificate of Origin filed through eCoO 2.0, presented at customs before clearance. Without it, the 20% MFN duty applies.